2010 Soccer World Cup Tourism Organising Plan

Department of Environmental Affairs & Tourism Republic of South Africa 2010 Soccer World Cup Tourism Organising Plan Executive Summary November 2005  Copyright, 2005 Department of Environmental Affairs and Tourism South African Tourism 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 2 Table of Contents 1. 2. Introduction .................................................................................................... 4 The 2010 World Cup Opportunity for Tourism ............................................ 7 2.1. Expected Tourism Demand During the Event ............................................ 9 2.2. Media Coverage of South Africa During the Event................................... 13 Key Challenges for Tourism around 2010 ................................................. 15 3.1. Tourism Information and Market Access .................................................. 18 3.2. Accommodation ....................................................................................... 19 3.3. Tourist Attractions and Activities .............................................................. 22 3.4. Service Levels and Skills.......................................................................... 22 3.5. Transport.................................................................................................. 25 3.5.1. International Air Access...................................................................... 25 3.5.2. Domestic Air Access .......................................................................... 26 3.5.3. Public Transport ................................................................................. 27 3.6. Tourist Safety and Security ...................................................................... 29 3.7. Other 2010 Tourism-related Challenges .................................................. 31 3.7.1. Managing Expectations ...................................................................... 31 3.7.2. Displacement of General Tourists ...................................................... 31 3.7.3. Demand Management........................................................................ 32 Getting Ready for Kick-off – Key Tourism Initiatives for the 2010 Soccer World Cup........................................................................................ 34 4.1. Information ............................................................................................... 36 4.2. Marketing and Branding ........................................................................... 39 4.3. Accommodation ....................................................................................... 41 4.4. Transport and Tourist Safety.................................................................... 43 4.5. Service Levels and Skills.......................................................................... 44 4.6. Events and Attractions ............................................................................. 46 Making it Happen – Implementing the 2010 Tourism Organising Plan ... 47 5.1. 2010 World Cup Tourism Unit .................................................................. 47 5.2. Suggested Prioritisation and Sequencing of Initiatives............................. 50 5.3. Monitoring and Evaluation of the Plan...................................................... 52 Conclusion ................................................................................................... 53 3. 4. 5. 6. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 3 1. Introduction On 15 May 2004, South Africa was announced as the winner of the bid to host the 2010 FIFA Soccer World CupTM. This was a momentous occasion particularly given that it was the first time that a country on the African continent had been chosen to host a mega-event of this stature. The 2010 World Cup Local Organising Committee (LOC) was formed later that year to oversee preparations towards ensuring South Africa’s readiness to successfully host this important event. The Technical Coordinating Committee (TCC) was subsequently established to coordinate the preparatory work of national government departments. The TCC has representation from several national government departments1, including the Department of Environmental Affairs and Tourism (DEAT) and South African Tourism (SAT). The TCC has tasked each of the government departments represented on the committee to prepare plans that would guide their respective activities in preparation for the 2010 Soccer World Cup. Within this context, as illustrated below, the Department of Environmental Affairs and Tourism, in conjunction with South African Tourism, embarked on the development of the 2010 Soccer World Cup Tourism Organising Plan. Figure 1: The 2010 Tourism Organising Plan within the context of the overall timeline Decision to bid Decision to bid by SA by SA Formation of Formation of LOC LOC DEAT develops DEAT develops a Tourism a Tourism Organising Plan Organising Plan Implementation Implementation phase of Tourism phase of Tourism Organising Plan Organising Plan begins begins Opening Opening ceremony of ceremony of 2010 WC in SA 2010 WC in SA 11/02 08/05 11/05 02/06 06/10 05/04 05/05 01/06 2009 Designation of Designation of 2010 WC to SA 2010 WC to SA Formation of TCC Formation of TCC Submission of the Submission of the 2010 Tourism 2010 Tourism Organising Plan to Organising Plan to Cabinet Cabinet Confederations Confederations Cup to be held in Cup to be held in South Africa South Africa Source: www.fifa.com, DEAT This document sets out the Tourism Organising Plan for the 2010 Soccer World Cup. It aims to provide a framework to guide, inform and coordinate the activities of government, the tourism industry, host cities and other tourism stakeholders in their respective preparations for the event in 2010. The purpose The following departments were invited to form part of the TCC: National Treasury, Sport and Recreation South Africa, Department of Trade and Industry, Department of Transport, Department of Safety and Security, Department of Foreign Affairs, Department of Environmental Affairs and Tourism and South African Tourism. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 4 1 of the Tourism Organising Plan is to ensure that tourism not only plays its role in delivering a memorable experience to 2010 World Cup attendees, but also leverages the event as a catalyst to create a step-up in the tourism competitiveness platforms in South Africa. Through this, the aim is to enhance the tourism sector’s contribution to economic growth and development through its interventions in preparation for the event. Objectives of the 2010 Soccer World Cup Tourism Organising Plan As illustrated in figure 2 below, the 2010 Tourism Organising Plan is informed by, and aligned with, the broader goals of the 2010 event, namely, the hosting of a world-class African World Cup, ensuring a lasting social legacy and spreading the benefits derived from hosting the event to the rest of the continent. The Plan is further informed by the goals of Tourism Growth Strategy and the Global Competitiveness Programme of the South African tourism industry, to contribute to sustainable GDP growth, sustainable job creation, and redistribution and transformation. Consequently, the objectives of the 2010 Tourism Organising Plan are to: Contribute towards hosting a successful FIFA World Cup in 2010 Maximise tourism value from the event Enable other African countries to benefit from the event Maximise the opportunity to brand South Africa as a tourism destination Have a positive impact on social legacy through advancing the tourism competitiveness agenda to support objectives of creating jobs, growth and equity Meeting these objectives will require government (national, provincial and local), the tourism industry (retailers and wholesalers of products and packages, tour operators, product owners, etc.) and broader stakeholders to jointly address key tourism challenges; and to ensure that the industry as a whole capitalises on opportunities arising through the event. Doing so requires focussed and coordinated interventions within six key functional areas: Information and transactional fulfilment Marketing and branding Accommodation Transport and tourist safety & security Skills and service levels Events and attractions 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 5 Figure 2: 2010 Tourism Organising Plan within the context of the goals of the event and overall mandate to tourism Broader objectives of 2010 Event Position South Africa to Achieve its Tourism mandate and broader 2010 Objectives… World class African World Cup Lasting social legacy Spread benefit to continent Mandate for Tourism Sustainable GDP growth Sustainable job creation Redistribution and Transformation Objectives of the 2010 Tourism Plan Objectives of the 2010 Tourism Plan Contribute to a successful event Maximise tourism value from event Enable other African countries to benefit Brand SA as a tourism destination Advance the tourism competitiveness agenda … by… Capitalising on 2010 Capitalising on 2010 Arrivals and Exposure Arrivals and Exposure Addressing Key Tourism Addressing Key Tourism Challenges To Deliver the Challenges To Deliver the Experience Experience …through coordinated interventions within each functional area. Information and Information and Transactional Transactional Fulfilment Fulfilment Tourism-friendly Tourism-friendly Transport and Tourist Transport and Tourist Safety & Security Safety & Security Marketing and Branding Marketing and Branding Accommodation Accommodation Skills and Service Skills and Service Levels Levels Events and Attractions Events and Attractions It is important to note that the development of the 2010 Tourism Organising Plan has been undertaken within the context of the overall timeline in the run-up to the event. Therefore, there are, at this time, several information gaps that have had an influence on the development of the Plan. At this point in time, decisions in the following areas are still to be finalised and will follow a specific FIFA protocol and timeline (and may only be finalised shortly before the event itself): The choice of host locations and their respective match venues The match schedule Qualifying teams Other key locations – team bases, practice venues, practice matches, friendly matches, etc. Therefore the plan is designed to be flexible and will need to be updated as key decisions are made. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 6 2. The 2010 World Cup Opportunity for Tourism The 2010 Soccer World Cup is a mega-event. With 32 of the world’s best national teams competing in 64 matches, watched by almost 3 million spectators and billions of viewers around the world, the event does present significant tourism opportunities to South Africa. Figure 3: Summary of tourism-related opportunities presented by the 2010 World Cup Opportunities presented by the FIFA World Cup TM Opportunities presented by the FIFA World Cup TM Increase tourism revenue in 2010 through the Increase tourism revenue in 2010 through the event event Increase in tourist Increase in tourist arrivals arrivals Upgrade the tourism supply-side to meet demand Upgrade the tourism supply-side to meet demand in 2010 and to significantly enhance South in 2010 and to significantly enhance South Africa’s tourism competitiveness in the long-term Africa’s tourism competitiveness in the long-term Widespread media Widespread media exposure and focus exposure and focus on South Africa on South Africa Enhance South Africa’s brand as a world-class Enhance South Africa’s brand as a world-class tourism destination tourism destination Broadly speaking, the tourism-related opportunities around the event are twofold. Firstly there will be an increase in tourist arrivals during the event, and secondly there will be widespread media exposure and focus on South Africa before and during the event. The increase in tourism arrivals during the World Cup provides the opportunity to increase tourism revenue in 2010. The increased arrivals also requires the tourism supply-side (including accommodation, tourist safety, attractions, transport, events, etc) to be upgraded to meet demand during the event. This in turn provides a unique opportunity to significantly enhance South Africa’s tourism competitiveness in the long-term. Delivering a world-class experience allows the tourism industry to convert arrivals during the 2010 event into brand ambassadors, who will “spread the word” and enhance South Africa’s brand as a world-class tourism destination. In addition, the widespread media exposure and focus on South Africa provides the opportunity to significantly raise awareness of South Africa as a world-class tourism destination. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 7 Therefore the event presents a platform to help South Africa achieve its tourism mandate and objectives. Figure 4: Goals and objectives of the tourism growth strategy The Tourism Act’s mandate is ... Sustainable GDP Growth Sustainable job creation Redistribution and transformation . . . through six key objectives . . . Increase in tourist volume Improve geographic spread Increase in tourist spend Improve seasonality patterns Increase length of stay Promote transformation . . . by acting in a focused way to . . . Understand the market Facilitate the removal of obstacles Choose the attractive segments Facilitate the product platform Market the Destination Monitor and learn from tourist experience It also provides an opportunity for South Africa to further improve its tourism performance relative to its main competitors. Figure 5: International Arrivals – SA compared to competitors 140 Total Number of Tourist Arrivals, 1999 – 2003 Australia Number of Arrivals (Index)* Thailand Brazil 100 Kenya US South Africa 60 1999 2000 2001 2002 2003 Arrivals to South Africa have steadily increased, which analysts believe is amongst others due to more focused and better marketing Note: *Indexed to 100 for 1999 for all countries; No 2003 data available for Kenya and Brazil Source: Global Competitiveness Report; ATC, Tourism Authority of Thailand, Embassy of Brazil in London, ITA Office of Travel and Tourism Industries, Monitor analysis 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 8 2.1. Expected Tourism Demand During the Event A reliable estimate of demand (in terms of the number, type and geographical distribution of participants) expected during the 2010 World Cup provides a critical basis to guide planning and preparations for the event. It is important to note however, that the estimates of demand detailed below were made based on the information available during the period over which the plan was developed. This demand picture is likely to change as further decisions are taken and as the planning process unfolds over the next few years. However, the demand data provided below does provide reliable working estimates to inform tourism planning going forward. The event is likely to last for about four weeks and is likely to take place between June and July in 2010, which is typically the low season for tourism in South Africa. During the 2010 World Cup it is estimated that there will be total of 3.5 million participants. Approximately 1.3 million of these are estimated to be tourist participants, a third of which are expected to be foreign arrivals. Tourism revenue of R11bn is expected to be generated during the event. The number of tickets is the basis for estimating demand The basis for estimating tourism demand is the number of tickets available during the 2010 World Cup and the distribution of these tickets across key demand constituents. The 2010 Bid Book was used as a source in respect of information on potential host locations, stadia and stadia capacities. This was complemented with information obtained from the Local Organising Committee (LOC) and FIFA ticketing and accommodation representative, MATCH AG. A preliminary match schedule presented by the LOC was used as a possible scenario for the distribution of matches across the potential host locations. In addition, a 7% “seat kill” factor was assumed for all stadia (i.e. 7% of the seat capacity of the stadium would not be available for security reasons, camera locations, etc.). This assumption is inline with “seat kills” experienced during previous World Cups. Given all of the above, the total number of tickets available for the event was estimated at 3.1 million2. The tickets available are allocated across five key demand constituents and the percentage allocation of tickets across these constituents is illustrated in figure 6 below.3 The key demand groupings are: Domestic fans (including regional fans arriving by land) General international fans Participating Member Association4 (PMA) fans The FIFA delegation FIFA sponsors and partners5 2 3 Note: this includes tickets available for sale to football fans and those allocated to FIFA and its sponsors Source: Discussions with FIFA ticketing and accommodation representatives on the 2002 World Cup in Korea / Japan 4 These are fans that purchase tickets from the FIFA Member Associations with teams participating in the event e.g. The English FA 5 The majority of these tickets are primarily for fans through sponsor sweep stakes 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 9 Figure 6: Total number of tickets and breakdown by major demand constituents Percentage Breakdown of Tickets by Demand Type 4,000 Total Number of Tickets 3,143 Number of Tickets (Thousand) 3,000 Domestic3 52% 2,000 Sponsors2 12% FIFA 3% 1,000 PMA1 8% International 25% 0 11 Match locations 1 Participating 2 Sponsors Member Associations which will be mostly the international football associations of participating countries includes TV stations and hospitality tickets which are mostly international 3 including regional ticket holders (SADC) Source: LOC 2010, MATCH, Monitor analysis It is important to note that the above distribution is an estimate. The actual distribution of tickets across the key demand constituents will be dependent on the ticketing policy and ticket pricing determined for the 2010 World Cup. Estimating tourist participants from the number of tickets The total number of participants (i.e. both spectators and non-spectators) was estimated based on the total number of tickets available and their distribution across key demand constituents. Assumptions were made regarding the number of tickets per spectator and the ratio of participants with tickets vs. those without tickets for each demand constituent6, which are detailed in figure 7 below. These assumptions were based on discussions with the FIFA ticketing and accommodation representative (MATCH AG) and the LOC 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 10 6 Figure 7: Estimated number of participants expected during the 2010 World Cup Estimated Total Number of Participants 4,500 4,000 189 189 Number of participants (Thousand) 3,500 3,000 2,500 2,000 1,500 1,000 500 0 726 1,453 817 272 225 225 72 47 54 7 3,536 2,179 545 1,732 Total Foreign = 445* Arrivals Participants without tickets Participants with tickets Domestic Other provinces 1.0 0.5 1,804 Non-tourist participants** Average tickets per spectator Ratio without tickets vs. with tickets Domestic Host province 1.5 2.0 International PMA FIFA Sponsors Total 3.5 0.0 3.5 0.0 2.0 0.15 2.0 0.0 *Assuming that 50% of sponsors are foreign arrivals; **Majority of these participants are expected to stay less than one night in a location and thus are classified as non-tourists Note: # of participants with tickets = # of tickets / average tickets per participant; # of participants without tickets = # of participants with tickets x (# without tickets / # with tickets); Sponsor tickets are primarily for fans through sponsor sweep stakes Source: Monitor analysis based on input from MATCH As illustrated in figure 7 above, the total number of participants is estimated to be 3.5 million, with 1.8 million of these being participants with tickets and a further 1.7 million being participants without tickets. Participants without tickets are people who travel to a host location in order to participate in matchrelated events but who do not attend a match in a stadium. Instead, these participants would participate in events at “virtual stadia” – i.e. at venues with large-screen projections of the match and other pre- and post-match activities. Importantly, 2.2 million of or the 3.5 million participants are expected to be non-tourist participants as they will be from the host province and therefore are expected to stay for less than one night. Therefore, the total number of tourist participants is estimated to be 1.3 million, of which approximately 445,000 are expected to be foreign arrivals. The balance are expected to made up by domestic trips from other provinces. Estimating tourism revenue from the number of tourist participants As illustrated in figure 8 below, the respective average length of stay and average spend per day, for each of the demand constituents that make up the overall number of tourist participants, was used as a 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 11 basis for estimating tourism revenue.7 The tourism revenue generated during the event is estimated to be R11bn8. The largest contributors to tourism revenue are international (both PMA and general) fans, driven primarily by the higher length of stay of international fans, followed by FIFA and its sponsors. Figure 8: Tourism revenue from the event is expected be around R11 billion Average Spend Average Spend per Arrival (Rand) per Arrival (Rand) = Spend per day x Average length of stay 25,000 22,050 20,000 2,000 2,500 FIFA & Sponsors International & PMA Domestic Other Province X Number of Number of Arrivals Arrivals (Thousand) (Thousand) = Estimated Total Estimated Total Expected Spend Expected Spend (Rand million) (Rand million) Total Expected Spend (Rand million) Average Spend per Arrival (Rand) Number of Arrivals (Thousand) 11,161 3,400 15,000 14,000 1,500 10,000 1,000 817 6,535 5,000 1,500 0 Domestic Other Province International & PMA FIFA & Sponsors 500 296 243 0 Domestic Other Province International & PMA FIFA & Sponsors 1,226 750 2 1,400 16 1,750 8 Spend per day (Rand) Average length of stay (Days) Note: The expected tourism revenue does not include ticket sales, spend by participating teams, other spend on sponsorships, merchandising, concessions and FIFA conferences; In addition to the R11bn, spectators from the host provinces will spend an estimated R 1.3 billion (non tourism spend); All the numbers are in 2004 constant money terms, i.e. inflation was not taken into account ; International, PMA, FIFA & Sponsors spend is on airlift, accommodation, meals, medical, recreation, shopping and transport Source: CWC Economic Impact Study, GT 2010 Soccer World Cup Bid Report, Departure Survey, Monitor analysis Opportunities to increase tourism revenue Each of the demand constituents offers different opportunities and equally has different constraints in terms of increasing their respective contributions to tourism revenue during the event. Firstly, the volume of international tourists (i.e. both the international and PMA demand groups) during the event will effectively be capped by the number of tickets available. In addition, international tourists are expected to have a relatively longer length of stay than the other demand constituents. Therefore, a key lever for increasing tourism revenue, in respect of these tourists, will be to maximise the spend per day through effective packaging of tourism products, and through the hosting of events and activities over the duration of the event. Estimates of spend per day and length of stay were based on the 2010 South Africa Bid Book; research on the economic impact of other major events such as the Cricket World Cup in South Africa, Rugby World Cup in Australia and the Sydney Olympics, and the SAT domestic and international departure surveys 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 12 7 Secondly, the FIFA and FIFA sponsors demand groups are expected to have a shorter length of stay relative to international fans, particularly as the majority of these tickets are used for sponsor sweepstakes, and are therefore passed on to their respective consumers. Therefore, the focus for these demand groups is to increase their length of stay by collaborating with sponsors in developing the packages provided to sweepstake winners, and by maximising spend per day through the hosting of events and activities. Finally, for domestic participants, increasing the volume of tourists is a potential lever for increasing tourism revenue. This can be achieved through encouraging a greater number of domestic tourists without tickets to participate in the event. However, this may be constrained by the availability of accommodation and transport capacity. It is important to note that the ticket prices for the 2010 event may also have a negative impact on the volume of domestic tourists who participate in the event. 2.2. Media Coverage of South Africa During the Event The media coverage and focus on South Africa in the run-up to and during the event will be unprecedented, driven by the enormous popularity of the event. The number of television viewers during the last three World Cups has averaged around 30 billion (cumulative). In 2002 in Korea/ Japan a staggering 1.1 billion viewers watched the final. Figure 9: Television viewership during previous Soccer World Cups 40 35 30 25 20 15 10 5 0 Total number of TV viewers per FIFA World Cup, 1986-2002 32.1 26.7 33.4 28.8 Japan / Korea - 2002 Number of viewers (billion)** TV coverage in more than 210 countries 1.1 billion people watched the final in Korea 13.5 More women (mainly in Asia) watched the matches than in previous world cups Out of home viewing and big screen viewing increased significantly Mexico - 1986 Italy - 1990 USA - 1994 France 1998* Japan/Korea 2002 * According to FIFA, viewership for France 98 was over weighted because of the auditing methods used in China, where viewership figures were based on rankings in Shanghai which were then multiplied by a factor to estimate the audience for the entire country ** The number of viewers is cumulative as it counts the number of viewers over the number of days the event was hosted. There is therefore double-counting Source: www.fifa.com 8 Note: Estimated tourism revenue is in 2004 constant money terms 13 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential South Africa has the added advantage of being in a similar time zone to the football loving nations of Europe. This is likely to attract a larger viewership from that region given the possibility, for television viewers, of more convenient kick-off times. This provides an unparalleled opportunity to enhance the brand awareness of South Africa as a premier tourist destination. A comparison was made of teams likely to qualify for 2010, given their track record in previous World Cups, and South African Tourism’s portfolio of key source markets. As can be seen from figure 10 below, a number of South African Tourism’s core markets are also countries that are likely to participate in the 2010 World Cup. In addition, the event may also provide the opportunity to increase tourism marketing activities in markets such as Brazil. Figure 10: Key tourism source markets that are likely to participate in the 2010 WC A large number of arrivals is expected to be from South African Tourism’s key source markets Core Markets Kenya Nigeria USA UK Australia France Germany Netherlands Tactical Markets Tanzania India Botswana Lesotho Swaziland Investment Markets Angola Mauritius Canada China Japan Mozambique Zambia Zimbabwe Watch-List Markets Ghana Senegal Brazil Malaysia New Zealand Singapore Belgium Ireland Italy Sweden Switzerland Strategic Hubs Egypt UAE Likely to participate in the 2010 WC Source: SAT Tourism Portfolio 2005-2009, Monitor analysis Therefore the event not only provides a significant opportunity to raise awareness and positivity towards South Africa as a tourism destination within the majority of core markets in South African Tourism’s portfolio, but also potentially within new tourism markets. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 14 3. Key Challenges for Tourism around 2010 In order to leverage the potential opportunities that have been detailed in the preceding section, it is necessary to ensure that specific challenges are addressed towards ensuring a unique and memorable experience for tourists during the event. This section sets out the key challenges identified for tourism that need to be addressed in order to deliver the experience during the 2010 World Cup. During the month over which the tournament will take place, activity is likely to be concentrated in and around the host locations where matches will be held. Therefore in developing the 2010 Tourism Organising Plan, workshops were held with each of the potential host locations identified in the 2010 Bid Book9 to better understand the tourism supply-side within these areas, and to assess their ability to both get the basics right through the provision of accommodation, public transport, tourism information etc. and broaden the experience of World Cup tourists visiting the area through tourist attractions and events. In order to ensure that tourists during the event have a satisfactory experience, the following core set of services will need to be provided. Some of these services will need to be provided by the tourism sector. In respect of other services such a transport and safety and security, partnerships will be required with other government departments and stakeholders. Figure 11: Core products and services to be provided to visitors during the 2010 WC Services provided by the tourism sector Information Information Accommodation Accommodation Attractions // Events Attractions Events Service Levels // Skills Service Levels Skills Services provided by other sectors Transport Transport Safety and Security Safety and Security 9 Workshops were conducted with the following host locations: Bloemfontein, Cape Town, Durban, Johannesburg, Kimberley, Nelspruit, Polokwane, Port Elizabeth, Rustenburg and Tshwane 15 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential On the days leading up to, during, and immediately after matches, a large number of people are expected to be in a host location. As these are likely to be both ticket holders and non-ticket holders, the numbers of people within a potential host location will exceed the stadium capacity, as illustrated in figure 12 below .This has implications for the tourism supply-side around these host locations. Figure 12: Estimated number of people per host location during matches 200,000 180,000 160,000 Number of Arrivals Expected arrivals per match per host location 165,451 These participants are not tourists and the majority will not require accommodation* 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Bloemfontein Cape Town 6,448 38,688 12,896 58,032 38,688 Sponsors FIFA PMA International Domestic - Other Province Domestic - Host Province 87,079 104,495 30,628 104,495 78,372 63,104 16,120 14,508 6,448 48,360 38,688 43,524 63,104 69,663 19,344 91,884 58,032 19,344 63,104 6,448 38,688 63,104 6,448 38,688 63,104 6,448 38,688 Durban Johannesburg Nelspruit Port Elizabeth Tshwane Ellis Park Johannesburg Kimberley Polokwane Rustenburg Soccer City 8 95,000 7 60,000 4 40,000 4 40,000 4 40,000 7 50,000 5 40,000 6 45,000 # Matches Size of Stadium 5 40,000 7 40,000 7 60,000 *Majority of these participants are expected to stay less than one night in a location and thus are classified as non-tourists Note: Based on scenario given in the presentation from the LOC in July 2005; Assumed 7% seat kill ( i.e. only 93% of the stadium capacity is available for spectators); Source: Monitor analysis Based on the projected expected demand in each potential host location and the results of the supplyside diagnostic on each of the locations, several supply gaps were identified in respect of potential host locations. As illustrated in figure 13 below, there are significant supply gaps across most host locations that need to be addressed going forward. For example, in terms of accommodation, only Cape Town and Durban will be able to meet the expected demand for accommodation during the event. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 16 Figure 13: Key supply gaps across potential host locations Qualitative rating of size of gap between 2010 demand and supply in each of the host cities Supply categories Potential host cities Poor access to channels and tourism info Insufficient accommodation Insufficient compelling attractions & activities Poor service levels Inadequate public and skills shortage transport Insufficient focus on tourist safety & security Bloemfontein Cape Town Durban Johannesburg Kimberley Nelspruit Polokwane Port Elizabeth Rustenburg Tshwane Size of gap Low Medium High Note: The ratings are meant to be directional; Accommodation rating is based on quantitative analysis while the rest of the ratings are qualitative Source: Monitor analysis Many of the challenges identified were consistent across a number of the host cities. In addition, the challenges for tourism identified for the 2010 World Cup echo the key strategic challenges identified in the Global Competitiveness Programme (GCP) for the South African tourism sector. This highlights the importance of the event as a catalyst to address these key competitiveness challenges faced by the tourism industry. The key tourism challenges for 2010, which are detailed in subsequent sections, can be summarised as follows: Poor access to channels and tourism information – – – – There is no integrated information platform that provides access to tourism products. Access to the channel by SMMEs is constrained. There is an incomplete picture of what tourism products currently exist. There is generally a shortage of tourist information centres and public facilities. Insufficient accommodation – – – Accommodation requirements for the 2010 World Cup significantly exceed existing capacity in a number of host locations. There is an insufficient supply of graded accommodation. There is no national booking platform to enable transactions with service providers, particularly smaller non-traditional accommodation establishments. 17 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential Insufficient compelling attractions and activities – – – Uneven spread and limited diversity of attractions and activities that are appealing to tourists in respect of some of the locations analysed. Some product gaps exist that need to be addressed (e.g. cultural products require improvement, limited evening entertainment). There is insufficient packaging of tourism products into experiences. Inconsistent service levels and skills shortages – The shortage of skills was identified by the GCP and was again amplified in the interactions with the locations analysed. They included: Lack of commitment and leadership to address the problem. Specific gaps raised in interactions with host cities include language training, service standards, management skills, and limited number of tourist guides. Inadequate and unsatisfactory public transportation – – – – – Some international air routes are constrained. The bulk of the public transportation in most of the cities is provided by mini-bus taxis, many of which would not be appropriate to meet the demand for 2010 due to roadworthiness and safety challenges. Tourism appears to be a lower priority on the transport agenda. Tourism signage and general route identification are inadequate. Constraints exist within the transport regulatory framework that impede tourism. Insufficient focus on tourist safety and security – – – – Although all the potential host locations seem to have safety and security contingency plans, there is limited specific focus on tourist safety. Negative perceptions around crime exist that need to be managed. There is limited tourism-related crime prevention capacity within most of the potential host locations. Lack of a national tourism safety and security plan. 3.1. Tourism Information and Market Access The availability of information on South Africa’s tourism offerings to consumers and trade partners; and the accessibility of tourism products are major challenges within the industry but also crucial levers for maximising the tourism benefit from the 2010 event. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 18 For consumers the challenge is that tourist information is currently not easily available and accessible and does not speak to their specific needs. While smaller and emerging players in the tourism industry have significant difficulties in accessing markets and channels, which may hamper the fair and equitable distribution of tourism value from an event of this kind. Currently the industry does not have a consolidated and robust database of tourism products available nor does it have an integrated national information platform with good linkages to regional sites to showcase these products. The websites which provide tourism information tend to operate individually and in isolation from each other. Much of the information that currently is available is static, for example, there is limited information on accommodation capacity availability. There is no national booking or contracting platform to enable transactions with service providers (especially SMMEs). In addition, it is difficult to access information on attractions, events and activities while in the destination due to the general shortage tourist information centres. These challenges need to be addressed in order to ensure timely, adequate and relevant tourism information to World Cup travellers both prior to the event and during the event while they are in the destination. 3.2. Accommodation An event of this nature is characterised by short-term spikes in demand for tourism products and services. This is particularly a challenge when it comes to the provision of accommodation, given that the provision of accommodation is fairly capital-intensive (particularly hotels) and requires sustainable demand to generate the necessary level of required returns. The figure below illustrates the estimated accommodation requirements (in terms of the number of beds) per potential host location based on the expected demand during the 2010 event. Accommodation demand during the event is expected to primarily be from international fans (both PMA and general fans), FIFA and FIFA sponsors. It is assumed that only 30% of domestic participants from other provinces require accommodation as the majority are expected to stay with friends or relatives. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 19 Figure 14: Estimated accommodation requirement per host city per match Beds Required per Match Arrivals – Domestic other provinces Arrivals – PMA and International Arrivals – FIFA and Sponsors = + + Estimated Maximum Number of Beds Required per Match 120,000 100,000 109,700 32,900 Number of Beds 80,000 60,000 40,000 20,000 19,900 0 Bloemfontein Cape Town Assuming one match at each of the following stadiums: Soccer City; Lofus and Ellis Park Assuming matches at Soccer City and Loftus 76,800 21,900 32,900 19,900 Kimberley Gauteng 19,900 19,900 Polokwane 27,400 19,900 Rustenburg Durban Nelspruit Port Elizabeth Note: Assuming that 70% of domestic arrivals from other provinces will stay with friends or relatives or return home on the same day Source: Monitor Analysis Gauteng (which is treated as a single area for the purposes of this analysis) is expected to have the largest demand for accommodation given that there are three match locations in the province. In estimating the accommodation requirements for Gauteng, two different scenarios have been provided. The first assumes that matches take place at all three venues (i.e. Soccer City, Ellis Park and Loftus), and the second assumes matches take place at two venues (Soccer City and Loftus). This highlights the impact that scheduling multiple matches at venues close together can have on the demand for accommodation. Given the expected demand during the event, accommodation requirements are expected to significantly exceed supply10 in most host locations with the exception of Durban and Cape Town. 10 Note that multiple sources were used to identify the number of beds available; however the information is by no means complete and should be updated. In most cases the number of beds within a 100km radius was used to estimate supply and a growth rate range of between 5-15% over the period 2005-2010 was assumed. 20 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential Figure 15: Estimate accommodation gap per host location Demand in 2010 (Beds required per match) Bloemfontein Cape Town Durban 19,900 beds 21,900 beds 32,900 beds Supply in 2010 (Beds available) 5,200-5,800 beds* 26,200-34,500 beds* 39,900-45,900 beds 45,500-49,800 beds* 45,500-49,800 beds* 1,500-1,700 beds 6,700-7,400 beds 2,600-2,900 beds 12,100-13,200 beds 14,100-15,400 beds % of projected demand that can be served 26-29% >100% >100% 59-65% 42-45% 8-9% 34-37% 13-15% 44-48% 71-77% 20,000 > Gap >10,000 Absolute Gap (Number of beds) 14,100-14,700 beds None None 27,000-31,100 beds 59,900-64,200 beds 18,200-18,400 beds 12,500-13,200 beds 17,000-17,300 beds 14,200-15,300 beds 4,500-5,800 beds 20,000 > Gap Gauteng (Soccer City & 76,800 beds Loftus 2-match) Gauteng (EP & SC & Loftus 3-match) Kimberley Nelspruit Polokwane Port Elizabeth Rustenburg 109,700 beds 19,900 beds 19,900 beds 19,900 beds 27,400 beds 19,900 beds KEY None 10,000 > Gap > 0 Note: * Data quality issue, need to reassess supply to ensure appropriate rating Source: Host City Interviews, 2010 comparative city analysis, Monitor analysis In addition to the shortage in terms of the number of beds available, a large proportion of beds that are currently available within the host locations are not graded. Therefore there is both a volume challenge in respect of accommodation, as well as a quality challenge. Figure 16: Penetration of grading of accommodation per host location Number of Graded vs. Ungraded Rooms per Host City, 2004 30,000 Ungraded Rooms Graded Rooms 24,880 Number of Rooms 20,000 18,094 19,077 8,703 17,761 15,066 6,694 9,040 10,000 5,000 2,750 9,409 7,962 300 11,189 5,562 3,216 1,500 1,200 1,029 2,187 779 5,033 6,026 1,862 3,171 1,267 684 583 4,783 0 2,250 Bloemfontein Cape Town Durban Johannesburg Kimberley Nelspruit Polokwane Rustenburg Tshwane Port Elizabeth Note: For all of the cities except Cape Town, Durban and Johannesburg, we assumed that 36% of the establishments were graded (based on national estimate) Source: TGCSA, 2010 Comparative City Analysis, Qualitative Interviews with Host Cities, Monitor analysis 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 21 Finally, in addition to the volume and quality challenges highlighted above, there is a third equally important challenge particularly in terms of accommodation but also in terms of other tourism products and services - that is pricing. In order to ensure that the tourists that arrive in South Africa during the event leave as brand ambassadors, it is critical to ensure that the accommodation provided is of the appropriate quality and is provided at the appropriate price point. 3.3. Tourist Attractions and Activities The value or revenue equation in tourism is driven by the volume of tourists, their length of stay and their average spend per day. The volume of tourists during an event of this kind (particularly international arrivals) is essentially capped by the number of tickets available during the competition. However their length of stay and spend per day can be maximised through the provision of compelling tourist attractions, activities and events in and around host locations (and the appropriate packaging of these). In this regard, it is essential to address the current uneven spread of activities and tourism products that are attractive to international tourists across the host locations. Some of the specific product gaps and other product-related issues that were identified across a number of host locations were: Cultural products (museums, township tours, etc.) require improvement and diversification Few adventure activities Limited evening entertainment offerings Existing tourist attractions require upgrading Inconsistent pricing of products Inadequate and under-developed township tourism There is also limited packaging of current products to offer tourists a range of experiences. Finally, a comprehensive national tourism product database, containing all existing tourism product offerings in South Africa, is required. 3.4. Service Levels and Skills The Global Competitiveness Programme identified service levels and skills as an area requiring the concerted focus of the tourism industry. This was further emphasised during the supply-side diagnostic conducted as part of the process of developing the 2010 Tourism Organising Plan, where a number host locations highlighted this as a key challenge that they face in terms of the 2010 event. In terms of service levels the GCP study found that, while overall satisfaction levels with the tourism experience in South Africa are very high (91% on average), there are signals from the small minority of dissatisfied tourists (largely business travellers) that service levels are an issue. In terms of 2010, the short-term and thus intense demand, is likely to place additional stress on the system. This could result in a further deterioration of service levels, thus the issue requires further attention going forward. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 22 Figure 17: Reasons for dissatisfaction (less than 10% of all tourists to SA)** Overall Holiday Experience, 2004 Exceeded Expectations Substantially 17% 10% 80% Characteristics Failing to Meet Expectations, 2004 73% All Business 67% 63% 69% All Non-Business 70% Exceeded Expectations 32% 28% 60% 50% 53% 50% Met My Expectations 46% 49% 50% Percent of Segment* 40% 36% 28% 34% 31% 34% 31% 30% Below Expectations 4% 10% 20% 20% 12% Below 2% Expectations Substantially 3% 0% 20% 10% All - Non-Business All - Business 40% 60% 8% 2%1% 0% Price Quality Service Levels Authentic Experience Availability / Ease of Access Other Uniqueness Value for Flexibility of Percent of Segment Money Itinerary * Calculated as a percentage of those respondents with expectations not met **Out of a total of 1,390 respondents surveyed, SA failed to impress 6% of leisure tourists and 13% of business travellers Source: Global Competitiveness Report, 2004 Tourist Satisfaction Index, Monitor Analysis The GCP study also identified the shortage of skills as an issue facing the industry. As illustrated in figure 18 below, the majority of businesses surveyed (55%) during the study believe that they lack access to adequate skills within their local areas. They also felt that existing training facilities do not adequately address these skills shortages, with the result that many assume the responsibility for training in respect of their businesses. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 23 Figure 18: Industry beliefs about skills and business growth The industry is of the view that skill shortages are constraining the growth of the industry “ There is a pool of human resources available in your region that meet your business growth needs” 60% 40% 40% 21% 20% 20% 15% 3% 0% Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Source: Global Competitiveness Report - Quantitative Industry Survey 2004, Monitor analysis There are certain systemic barriers, identified by the tourism industry, that need to be overcome in order to address the broader skills issue in the industry. These are discussed in more detail in the report on the Global Competitiveness Programme, and are briefly highlighted below: A perceived lack of urgency to address the issue. The exact nature and location of skills gaps within the value chain and within sub-sectors remain unknown. Structural issues within the industry (e.g. largely highly fragmented, small family owned businesses) that drive the barriers to attracting and retaining skills. Misalignment on the core issues due to the absence of a common language system around the issue of skills A perceived lack of coordinated leadership to address the problem. In addition, an event of this nature brings additional challenges in terms of skills. Firstly, at a local government level several of the potential host locations do not have sufficient experience in organising and coordinating an event of this magnitude. This points to the need to provide support at this level, both nationally, and through the sharing of learnings between host locations with such experience. Secondly, given the breadth of fans that are likely to attend the event, it will be necessary to provide translation services in respect of a wide range of languages. Thirdly, the workshops with the potential hosts identified a potential shortage of tour guides to meet demand during the event. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 24 3.5. Transport Transport is a significant issue that needs to be addressed not only to enhance our competitiveness as a tourism industry, but also to ensure the successful hosting of the 2010 World Cup. A 2010 Transport Plan is being developed by the Department of Transport. In addition, the report on Global Competitiveness Programme deals in detail with the issue of transport and its impact on tourism competitiveness. However, this section highlights some of the transport-related issues that are more relevant to tourism during the 2010 event. 3.5.1. International Air Access The estimated number of foreign arrivals during the event, as discussed earlier in section 2.1, is expected to be approximately 445,000. As illustrated in the figure below, the projected number of all air arrivals in the peak tourist month in 2010 (December) is estimated to be 481,000. The projected arrivals during the off-peak month in 2010 is estimated to be 318,00011. This is typically in the month of June, when the event is likely to be held. Therefore air capacity needs to be addressed to provide access to World Cup travellers, and to ensure that non-World Cup air travellers are not displaced, given that most of the projected capacity in 2010 will be required by football fans travelling to the event. Figure 19: Estimated Air Arrivals during 2010 If air access is not managed non- World Cup air arrivals will be displaced since most of the capacity in 2010 will be required by World Cup travellers Comparison of 2004 number of international air arrivals per month with 2010 estimates 500,000 2004 Actual 481,000 2010 Estimates 445,000 Number of international air arrivals 450,000 400,000 342,894 375,000 350,000 300,000 318,000 291,944 250,000 236,845 200,000 December 2004 (Peak month) 2004 Average June 2004 (Lowest month) Estimate for December 2010 (Peak month) Estimated average in 2010 Estimate for June 2010 Estimated arrivals during 2010 World Cup Note: The number of air arrivals are the sum of international arrivals at JNB and CPT airports; The average arrivals number includes about 100,000 South African citizens; Growth of about 6% per annum was used from 2004 to 2010 based on the historic growth rate of all air arrivals Source: ACSA, SAT, Monitor analysis Note: This is an estimate of standard air arrivals during the off-peak month in 2010 and does not include any arrivals for the 2010 World Cup 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 25 11 In 2004 there were three key air routes where capacity was constrained under “normal” load conditions.12 These routes provide access to three of the core markets in South African Tourism’s portfolio. This points to the need for a detailed focus at a route-specific level, on capacity requirements and constraints. This is key towards ensuring that additional capacity or alternatives are provided for international fans during the 2010 World Cup, particularly those from key tourism and 2010 source markets in Europe. Figure 20: International air capacity utilisation on key routes to SA Route Capacity Utilizations - 2002 Route Capacity Utilizations - 2003 Route Capacity Utilizations - 2004 100% 100% 100% 86% 80% 65% 76% 79% 77% 80% 66% 80% 81% 86% 82% 80% 67% 63% 66% 62% 50% 83% 64% 64% Percentage Percentage Percentage 60% 52% 44% 40% 53% 60% 56% 52% 45% 60% 40% 40% 20% 20% 20% 0% Hong Kong Amsterdam Singapore Nairobi Germany Lagos Paris UK 0% Hong Kong Singapore Amsterdam Nairobi Germany Lagos Paris UK 0% Hong Kong Amsterdam Singapore Nairobi Paris* Germany Lagos UK C1 : 0 2 8 0 7 10 0 9 2 0 4 0 7 9 0 10 n/a n/a n/a n/a n/a n/a n/a n/a Note: 1) C: Number of months the route is constrained (load factor>=75%) in the given year 2) The load factors for US-SA are not released due to confidentiality reasons, since there is currently one major player in this market * SAA has put additional capacity on the Paris route Source: ACSA 3.5.2. Domestic Air Access Once in the country, domestic air access is vital not only to ensure that spectators are able to obtain access to host locations and match venues, but also to ensure that key tourism attractions can be accessed by World Cup travellers during the event. In 2004, the three major domestic routes (Johannesburg-Durban, Johannesburg-Cape Town and Cape Town-Durban) showed signs of capacity constraints. However, there are several other routes that are currently not experiencing high load factors, but even at full load, simply do not have the capacity to provide access to the expected volume of spectators that will be coming to watch a match in the host location. For example, although the Johannesburg-Bloemfontein route is only at a load factor of 65%, there is insufficient capacity, both in terms of the route and in terms of the ability of the airport, to handle the number of arrivals during a match. 12 South African Airways and Air France have subsequently added additional capacity on the Paris route 26 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential Figure 21: Domestic air capacity utilisation Average Load Factor on Domestic Routes, 2004 Load Factor 40-60% 61-70% 71-80% JohannesburgJohannesburgKimberley Kimberley LF: 60% LF: 60% JohannesburgJohannesburgPolokwane Polokwane LF: 68% LF: 68% JohannesburgJohannesburgNelspruit Nelspruit LF: 52% LF: 52% JohannesburgJohannesburgDurban Durban LF: 74% LF: 74% JohannesburgJohannesburgCape Town Cape Town LF: 73% LF: 73% Cape TownCape TownKimberley Kimberley LF: 59% LF: 59% Cape TownCape TownBloemfontein Bloemfontein LF: 61% LF: 61% JohannesburgJohannesburgBloemfontein Bloemfontein LF: 65% LF: 65% Cape TownCape TownDurban Durban LF: 73% LF: 73% JohannesburgJohannesburgPort Elizabeth Port Elizabeth LF: 64% LF: 64% Cape TownCape TownPort Elizabeth Port Elizabeth LF: 68% LF: 68% Source: 2004 ACSA statistics Domestic air access should therefore also form part of an integrated multi-modal transport plan that addresses inter-provincial transport during the event. However, it is important for there to be close coordination between the development and implementation of the transport plan and the tourism plan, as certain choices made in terms of transport may have implications for tourism, particularly in terms of the demand for accommodation. 3.5.3. Public Transport Access to tourism attractions is a critical issue and efficient public transport infrastructure is a vital element in maximising tourism value from the event, as it will enable access to tourism products, attractions and activities during the event. The figure below depicts the findings of an industry survey conducted as part of the Global Competitiveness Programme. The results of this survey clearly show that the tourism industry ranks public transport as one of the most important priority investment areas towards enhancing tourism competitiveness. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 27 Figure 22: Industry views on priority areas for infrastructure investment Industry’s view on top priority investment areas** % of respondents who felt this is a top priority 30% 23% 20% 16% 14% 11% 10% 7% 6% 6% 5% 11% Tourist info provision infrastructure 0% Safety & security infrastructure *Public facilities Public transport infrastructure Internet access infrastructure *Public facilities: toilets, beach dressing rooms and showers, etc; **Infrastructure assets that are in most urgent need of government investment to enable an effective tourism service Source: Qualitative interviews with host cities; Global Competitiveness Report - Quantitative Industry Survey, 2003 / 2004; Monitor analysis In addition, specific transport issues related to tourism during the 2010 event were also raised during the supply-side diagnostic of the potential host locations. These were as follows: The current public transport infrastructure is inadequate and unsatisfactory. – – The bulk of public transportation is provided by mini-bus taxis, which in its current state would not be appropriate to meet the demand for 2010 due to roadworthiness and safety challenges. The public transport system is still configured to serve a commuter market, and thus does not address access to accommodation and tourism attractions. In addition, operating schedules do not meet tourist needs, particularly at night. While a transport plan is being developed for 2010 by the Department of Transport, tourism is lower on the host locations transport agenda for 2010. The focus is primarily on ensuring connecting airports with hotels and access to match venues as well as a more general upgrading of the transport system in host locations, and not on access to tourism attractions. There appears to be an over-reliance on the taxi recapitalization process within several host locations to address the public transport needs during the 2010 event. Tourism signage and general route identification is inadequate and needs to be upgraded. This again falls lower on the priority of transport infrastructure needs but is vital for tourism. The current transport regulatory environment is not tourism-friendly. Several challenges within the current regulatory environment will constrain tourism during an event of this nature. For example: – There will be a need for flexible schedules and itineraries for tourism transport services (e.g. tour buses) which the current application and licensing process does not allow. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential Telecommunications network Airport terminals Domestic air capacity Roads 28 – Multiple car permits may be required, whereas currently only single car permits are allowed, even for car rental companies. 3.6. Tourist Safety and Security Safety and security is an important purchase criterion for South Africa’s target consumers in all its core markets. The perceptions and concerns that consumers have around safety are major challenges that South Africa faces as a tourism destination. In fact, a large proportion of tourists from our target markets choose not to come to South Africa because of safety concerns. Figure 23: Consumers lost to SA because of safety concerns Across 8 key markets, 22,25 million potential travellers did not consider South Africa over the last 5 years because they were concerned about safety Consumers not Travelling to SA due to Safety Concerns 2005 (Thousands) USA UK Germany France Netherlands Australia India China 0 1,000 2,000 3,000 (000’s) 4,000 220 882 1,645 2,345 3,337 4,716 4,077 Proportion of Target Market 39.2% 36.3% 32.3% 25.2% 27.0% Total: 22,25 million 33.8% of target market across 8 countries 5,032 5,000 6,000 35.3% 27.6% 39.0% Note: Of all who have not visited SA, Question from SAT Brand Tracker: “Why haven’t you visited South Africa for leisure purposes in the past 5 years? (Select all that apply)” Source: GCP Analysis, SAT Market Segmentation Studies, SAT Brand Tracker, January 2005, Monitor analysis In addition, tourism industry players ranked tourist safety and security as the top most important area for infrastructure investment. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 29 Figure 24: Industry views on priority areas for infrastructure investment Industry’s view on top priority investment areas** % of respondents who felt this was a top priority 30% 23% 20% 16% 14% 11% 10% 7% 6% 6% 5% 11% Tourist info provision infrastructure 0% Safety & security infrastructure *Public facilities Public transport infrastructure Internet access infrastructure *Public facilities: toilets, beach dressing rooms and showers, etc; **Infrastructure assets that are in most urgent need of government investment to enable an effective tourism service Source: Qualitative interviews with host cities; Global Competitiveness Report - Quantitative Industry Survey, 2003 / 2004; Monitor analysis The 2010 Soccer World Cup provides the opportunity to address the negative perceptions around tourist safety and security by ensuring a safe and positive experience for tourists visiting the country during the event. However, several challenges need to be addressed in order to achieve this, that arose from the workshops with the potential host locations,: Insufficient focus on tourism safety and security – while most of the host locations have indicated there intention to develop safety and security contingency plans for the event, there appears to be limited focus on tourist safety. Limited crime prevention capacity – there are insufficient resources available within many of the host locations. Lack of a national tourist safety and security plan – there is currently no integrated national tourist safety and security plan. In this regard, there is an opportunity to leverage the experience and learnings of the Mpumalanga and the Western Cape, both of which have established tourist safety and security mechanisms. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential Telecommunications network Airport terminals Domestic air capacity Roads 30 3.7. Other 2010 Tourism-related Challenges There are other tourism challenges, specific to a mega-event event of this kind, that also need to be managed. These are: The need to manage expectations Displacement of general tourists Demand management during the event Each of these areas is briefly discussed below. In addition to these tourism challenges, there is likely to be a potential negative impact on the environment during an event of this scale. DEAT should ensure that proactive steps are taken to manage the potential environmental impact of the vast number of people expected in a host location. In this regard, an environmental impact management plan should be developed, that includes a strategy for waste management. 3.7.1. Managing Expectations There has understandably been a significant amount of excitement, enthusiasm and energy that has been built up in South Africa in respect of the hosting of the 2010 World Cup. While this is important to build the support of South Africans to help make this event a success, it needs to be carefully managed. Inadequate expectations management around the event may lead to over-investment in tourism products for 2010 that would not be sustainable beyond the event itself. In order to appropriately manage such potential over-investment, there needs to be a clear understanding of tourism products and capacity (particularly accommodation establishments) that are currently in place. In addition, there needs to be transparent communication to the broader industry to enable more effective investmentrelated decisions. 3.7.2. Displacement of General Tourists In the months, and potentially years, before and after a major event of this kind there will be displacement of general tourists. Australia, for example, experienced a significant slowdown in tourism arrivals in the year of the Olympics, but also in the year leading up and the two years following the event. There is thus an important risk that the 2010 World Cup could negatively impact tourism revenue during the year of the event unless the general tourism strategy actively manages that risk. By way of example, the figure below illustrates the potential impact of displacement by considering two possible displacement scenarios. These scenarios focus on spend by foreign tourists, in the two months prior to the event, the month of the event and the two months post the event. However, even with such a narrow displacement window, the impact of displacement is significant - between 25% to 50% (i.e. R2.5bn to R5bn) of the estimate tourism revenue likely to be generated during the event itself. The 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 31 magnitude of the impact of displacement could in fact be far greater, and this highlights the need for a very specific focus within the tourism industry to address this challenge. Figure 25: Displacement could reduce the net revenue impact of 2010 by 25% to 50% Worst case scenario - Displacement of 90% during and 10% in each of the 2 months before & after the event Effect of displacement on the net additional spend 60,000 Spend (Rand million) 11,161 50,000 47,800 4,920 4,920 40,000 11,161 54,041 6,241 6,241 54,041 47,800 Foreign spend only 30,000 Spend in 2004 Displacement Spend during 2010 WC Total Spend in 2010 Net Additional Spend Best case scenario - Displacement of 60% during and 2% in each of the two months before & after the event 60,000 Effect of displacement on the net additional spend 11,161 11,161 56,401 56,401 8,601 8,601 Spend (Rand (million) 50,000 47,800 2,560 2,560 40,000 47,800 Foreign spend only Displacement Spend during 2010 WC Total Spend in 2010 Net Additional Spend 30,000 Spend in 2004 Note: The average monthly spend was used to estimate displacement. 2% displacement in best case scenario is informed by displacement in Korea in 2002. But this number is low because the September 11 attacks displaced general tourists in 2001; All numbers in 2004 terms, i.e. inflation was not taken into account Source: SA Tourism, KNTO, Governor of Utah, London Olympics 2012 Economic Analysis, Monitor analysis 3.7.3. Demand Management There is undoubtedly significant cost attached to the provision of tourism products and services during the event. Demand management and the understanding of the factors that influence the profile, volume and distribution of demand needs to be an area of focus for the tourism industry. This is important in order to understand the impact on the tourism industry of choices made regarding these factors. It will also guide the proactive management of demand for the provision of tourism services during the event. There are several factors that are likely to affect the profile, volume and distribution of demand during the event. Certain key factors are highlighted below, along with some of the implications for the tourism industry of choices made in respect of these factors: Ticketing policy and pricing – The outcome of the policy decision on how tickets will be distributed across the different demand constituencies will have an impact on the demand for accommodation and transportation. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 32 – The ticketing policy and pricing could be leveraged to reduce the burden on smaller host locations, for example the sale of more tickets to domestic participants in these locations would decrease the need for accommodation. Choice of host locations – – Host locations with underdeveloped tourism infrastructure may not realise the expected return on tourism-related investments. There is a need to analyse the cost versus benefit for these cities, and consideration could be given to reallocating matches to larger cities. Stadium capacities – This is a key driver of overall demand within a host location, and will thus have an impact on accommodation requirements in host locations. Match schedule – The match schedule does have a significant impact on the demand for tourism services, both in terms of intensity and distribution. Therefore the scheduling of matches needs to take into account accommodation and transport requirements, particularly in Gauteng, where matches played in quick succession to each other in the three venues in the province will place a tremendous strain on these resources. Non-ticket holder participants – Enticing non-ticket holders to participate in the event provides an opportunity to increase the volume of tourist during the event, thus increasing tourism revenue. However, increasing the number of visitors without tickets, will consequently place additional load on limited resources in terms of transportation and accommodation. Ease of access – – Improving the accessibility and capacity of transport linkages could reduce the need for accommodation especially for participants from other host provinces. Limiting the need for non-ticket holders from within the host province to travel to the host location (e.g. through virtual stadia and events outside the host location) could improve accessibility. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 33 4. Getting Ready for Kick-off – Key Tourism Initiatives for the 2010 Soccer World Cup South African Tourism’s integrated marketing framework can be used as a basis for organising challenges that the tourism industry will be required to address in preparation for the 2010 World Cup. This integrated marketing framework consists of three stages, namely: Recruitment - getting tourists to come to South Africa Experience Delivery – providing tourism products and services to enhance their experience when they are in our country, and Leverage – getting them to repeat visit and/or raise awareness of South Africa as a tourist destination Figure 26: 2010 WC tourism challenges mapped to SAT’s marketing framework Challenges identified for Tourism Displacement of general tourists Displacement of general tourists Poor access to tourism information Poor access to tourism information Limited SMME access to channels and markets Limited SMME access to channels and markets Insufficient packaging of products Insufficient packaging of products Insufficient accommodation Insufficient accommodation Inadequate & unsatisfactory public transportation Inadequate & unsatisfactory public transportation Insufficient focus on tourist safety & security Insufficient focus on tourist safety & security Lack of tourism specific infrastructure Lack of tourism specific infrastructure Poor service levels and skills shortage Poor service levels and skills shortage Uneven distribution of attractions, activities & events Uneven distribution of attractions, activities & events Limited understanding of World Cup tourists Limited understanding of World Cup tourists Integrated focus areas Recruitment Recruitment Experience Delivery Experience Delivery Raising unaided awareness and positivity of SA Raising unaided awareness and positivity of SA Leverage Leverage Initiatives to address the tourism challenges for the 2010 event are required in each of the three stages of the integrated marketing framework. However, as can be seen from figure 27 below, a large number of initiatives are focussed on the “Experience Delivery” stage. That is, a number of initiatives are required to ensure that the necessary tourism infrastructure, products and services are in place to deliver a highly satisfactory experience to 2010 World Cup travellers. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 34 Figure 27: Initiatives are required across each stage of SAT’s marketing framework Recruitment 1. Experience Delivery 5. 6. 7. Leverage Engage with key stakeholders in SA and neighbouring countries to package products for 2010 and to manage displacement Create a national content management platform Create interface to enable transaction booking Manage displacement Increase the number of graded establishments Identify existing and alternative accommodation for short-term spikes in demand Ensure sufficient tourism-friendly public transportation to tourism focal points Ensure completion & implementation of a national tourism safety plan Address poor service levels and skills shortages at key consumer touch points Coordinate event planning to maximise tourism value from the event Coordinate development & upgrading of attractions Research WC demand to better understand profile, perceptions and expectations Scale-up SAT call-centre Create a 2010 national tourism volunteer program Cross-cutting initiatives 16. 16. 15. 15. 8. 2. 9. 10. 3. 11. 12. 13. 14. Identify and utilise opportunities to capture information about 2010 arrivals (CRM) 4. Deliver the brand to convert arrivals to brand ambassadors 17.. Develop a robust database of available products 18. Identify 2010-related opportunities to brand South Africa as a world-class tourism destination 2010world- In order to facilitate implementation, the initiatives listed above have been grouped into the following specific functional areas: Information Marketing and branding Accommodation Transport and tourist safety & security Skills and service levels Events and attractions 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 35 Figure 28: Initiatives grouped into specific functional areas to facilitate implementation 10. Coordinate event planning to maximise tourism value from the event 11. Coordinate development and 2. Create a national content management platform booking 3. Create interface to enable transaction 12. Research WC demand to better upgrading of attractions Events & Events & Attractions Attractions 9. understand profile, perceptions and expectations 13. Scale-up SAT call-centre 14. Create a 2010 national tourism volunteer Address poor service levels and skills shortages at key consumer touch points Skills & Skills & Service Levels Service Levels Information Information program 15. Identify and utilise opportunities to capture information about 2010 arrivals 17.. Develop a robust database of available Requires coordination Transport Transport & Safety & Safety Marketing Marketing & Branding & Branding products 1. Engage with key stakeholders in SA 7. Ensure sufficient tourismfriendly public transportation to tourism focal points Ensure completion & implementation of a national tourism safety plan and neighbouring countries to package products for 2010 and to manage displacement 16. Deliver the brand to convert arrivals 8. to brand ambassadors Accommodation Accommodation 18. Identify 2010-related opportunities to brand South Africa as a worldclass tourism destination 5. Increase the number of graded establishments 6. Identify existing and alternative accommodation 4. Manage displacement for short-term spikes in demand Successful implementation of these initiatives requires focussed execution within each of these functional areas and effective coordination across these functional areas. This section provides a summary of the initiatives that need to be undertaken within each specific functional area. To facilitate implementation: the objectives, key action steps, proposed team structure and their roles have been developed for each of the initiatives discussed. These are detailed in the accompanying PowerPoint document. 4.1. Information Tourism information will need to be provided to various users: consumers, trade partners, product owners, host cities and provinces. Although the primary focus in terms of information provision will be consumers (i.e. 2010 World Cup travellers), it will be necessary to also provide information to trade partners to package and sell the appropriate set of experiences; and to product owners, host cities and provinces to enable them to provide the relevant products and services. This information could be provided through a variety of channels prior to 2010 World Cup tourists travelling to the country (Recruitment), while they are in the country (Experience delivery) and after they have left (Leverage). These information channels will be vital not only to provide information to tourists but will also be important to capture information on these tourists. The latter would allow for tailoring of the content that is provided to tourists (i.e. providing information that they are most likely to be interested 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 36 in), and to enable communication with these tourists post the event. As can the seen from figure 29 below, the South African Tourism website and call centre are important information channels as they enable communication with tourists across all three phases. The content that will be disseminated through the various information channels should be managed centrally, through a national content management platform with specific 2010-related tourism content. This needs to be integrated with any host city or provincial platforms, to provide a single point of entry, and to ensure a consistent look and feel. The national content management system needs to be supported by a robust product database with up-to-date information. This will ensure that tourists are aware of the various tourism products and services that are available. This is important to provide market access and visibility to the many SMME players in the industry. It will also be important for such a system to include functionality that enables monitoring of the volume of requests for information and the nature of the queries received. This would facilitate rapid response, during the event itself, to any issues identified. Figure 29: Proposed framework for providing and capturing tourist information Consumer Channels Experience Delivery Volunteers Other consumer Information Mobile touch points centres SAT surveys it cru Re nt me Call centre Web Lev erag e Trade partners Promotions through FIFA sponsors National Content Management Platform Product Database Product Owners Source: Monitor analysis Cities / Provinces In addition to providing and capturing information, the 2010 World Cup also provides the opportunity to enable more efficient transactional fulfilment through the creation of a centralised booking platform. Such a platform could be an effective means of ensuring that the large number of SMME players within the tourism industry are provided with the opportunity to benefit from an event of this kind, as many of them simply do not have the resources to access the traditional marketing and sales channels. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 37 The information platform outlined above and the development of an interface that enables centralised bookings will be vital to maximising revenue from the event. It will facilitate the fair and equitable distribution of tourism value from the event, but most importantly, it will help to significantly enhance our competitiveness as a tourism destination in the long-term. In order to provide a reliable and comprehensive information platform, there are several informationrelated initiatives that need to be undertaken. These include the following: Research World Cup demand to better understand the profile of a World Cup tourist, their perceptions, their behaviour and their expectations Scale-up the SAT call-centre to handle the anticipated increase in traffic and additional language support that will be required Create a 2010 national tourism volunteer program to provide information at key locations during the tournament Identify and utilise opportunities to capture information about 2010 arrivals Create a national content management platform Develop a robust database of available products13 Create an interface to enable transactional fulfilment Figure 30: Key initiatives in the information functional group Consumer Create a 2010 national tourism volunteer program Research WC demand to better understand profile, perceptions and expectations Channels Delivery SAT surveys Create interface to enable transaction nt me u it booking ecr R Other consumer Information Mobile touch points centres Call centre Web Promotions through FIFA sponsors Scale-up SAT call-centre Lev erag e Volunteers Trade partners Identify and utilise opportunities to capture information about 2010 arrivals National Content Management Platform Create a national content management platform Product Database Develop a robust database of available products Product Owners Source: Monitor analysis Cities / Provinces 13 A project led by DEAT and SAT is currently underway to develop a tourism product database and this should provide the information necessary as an input to the national content management platform for the 2010 World Cup. 38 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 4.2. Marketing and Branding The popularity of the Soccer World Cup means that the demand for World Cup tickets in 2010 is likely to far exceed supply (as was most recently the case with the World Cup in Germany). Consequently the acquisition cost, from a tourism perspective, for the additional foreign arrivals that will travel to South Africa during the event will be low. Therefore, attracting foreign visitors to the event should not be the primary focus of the marketing or recruitment efforts undertaken by the tourism industry. The focus should rather be to ensure tourism packages are available to enable trade partners to cross-sell and upsell to the foreign visitors that will be coming. Instead, recruitment efforts should focus on the domestic and regional markets to maximise the volume of these tourists that participate in the event (both ticketholder and non-ticket holders). Marketing and branding of South Africa as a tourism destination through the 2010 Soccer World Cup requires focus in four key areas: Development of branding content Leveraging the media exposure Development of tourism packages Leveraging arrivals during the 2010 event Figure 31: Leveraging the event to market SA as a world-class tourism destination Engage with key stakeholders in SA and neighbouring countries to package products Identify 2010-related opportunities to brand South Africa as a worldclass tourism destination Develop data-driven content based on specific barriers identified in brand tracking study within 2010 target markets to raise awareness of South Africa as a tourism destination Develop Branding Content Leverage media exposure Identify key events in the runup to and during 2010 Collaborate with FIFA and 2010 sponsors Comply with FIFA marketing and branding guidelines Create positive energy around the event to market to regional and domestic participants Develop products and packages Develop products and packages to cross-sell and up-sell during the event Develop a campaign to minimise the impact of displacement before and after the event Leverage arrivals Ensure arrivals are converted to brand ambassadors with a focus on VIPs Ensure high levels of satisfaction by providing appropriate tourism products and services Manage Displacement Deliver the brand to convert arrivals to brand ambassadors Source: Monitor analysis Each of these is unpacked in further detail below. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 39 Development of brand content In order for any branding efforts around the event to be effective it is important that there is alignment between the branding of South Africa as a tourism destination and the branding of the 2010 World Cup event itself. This will require cooperation with the key organisations involved with branding at a national level e.g. International Marketing Council (IMC), Government Communication and Information Service (GCIS) and the Local Organising Committee (LOC). In addition, the content developed for branding SA as a tourism destination through the event needs to be data-driven and should seek to address the key barriers (e.g. affordability, safety and security etc.) and leverage the insights identified in the Brand Tracking studies undertaken by South African Tourism, with a focus on the key 2010 source markets. Leveraging the media exposure Key opportunities need to be identified to effectively leverage the focus and extensive media coverage that will accompany the event, to brand South Africa as a tourism destination. These would be the major events in the run-up to and during the 2010 World Cup. Examples of such events are: 2006 World Cup closing ceremony in Germany, where there will be an official hand-over to South Africa as the next host FIFA conferences Match draws Ticket sales process Related events such as the African Cup and the Confederations Cup which will be held in South Africa in 2009 2010 Opening Ceremony and matches during the event itself During the event itself any marketing or branding initiatives would need to comply with FIFA’s marketing guidelines. Therefore there is a need to understand the potential constraints that may be inherent in FIFA’s marketing guidelines, and where possible, to collaborate with FIFA to maximise the tourism branding opportunity. In addition, the most lucrative media slots are likely to be allocated to FIFA sponsors. Therefore the potential for joint marketing efforts with these sponsors should be explored. Development of tourism packages Key stakeholders need to be engaged to ensure that tourism packages are developed that include tourism products and attractions both in South Africa and the region; and to ensure that these packages are effectively marketed to 2010 World Cup tourists. This includes: Establishing relationships with regional tourism organisations, potentially through RETOSA14, to facilitate the development of regional tourism packages and to coordinate efforts to market the region more effectively. Collaboration with inbound tour operators and outbound tour operators in key 2010 source markets around the development and promotion of 2010 tourism packages. 14 RETOSA – Regional Tourism Organisations in Southern Africa 40 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential Collaboration with host cities and provinces to facilitate the development of packages for the event. In addition to tourism packages for the event itself, there needs to be a specific campaign that is focussed on minimising the impact of displacement of general tourists before and after the event. This would require specific messaging, promotions and packages to ensure that general tourists still travel to South Africa before and after the 2010 World Cup. Leveraging arrivals during the event The South African tourism industry needs to “deliver the brand” to ensure that arrivals during the 2010 Soccer World Cup leave as brand ambassadors for South Africa as a tourism destination. The tourism industry can achieve this by ensuring that it delivers a memorable experience by providing the necessary tourism products and services, providing safe and easily accessible attractions and events, ensuring a diverse offering and very importantly ensuring appropriate pricing. There should also be a specific focus on certain key constituencies (such as the media), as the quality of their experience could be leveraged to enhance awareness of South Africa as a tourism destination. 4.3. Accommodation As detailed in 3.2 of this document, the provision of accommodation was identified a one of the major tourism-related challenges for the 2010 Soccer World Cup, with the majority of potential host locations facing significant accommodation supply gaps. The accommodation challenge for the event is threefold, namely – the provision of sufficient quantity of accommodation, that is at the appropriate quality and price. Therefore addressing the accommodation challenge, as illustrated in Figure 32 below, requires interventions in three key areas: Identifying accommodation establishments that currently exist but that have not been accounted for to develop a more accurate assessment of the accommodation supply gap for the event.15 Identifying alternative/temporary accommodation to meet the short-term spikes in demand. Increasing the number of accommodation establishments that are graded or assessed to ensure the meet the relevant quality criteria. 15 This should be part of the broader initiative to develop a robust database of available tourism products in South Africa 41 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential Figure 32: Key initiatives in the accommodation functional group Illu str ati ve Illustrative breakdown of accommodation supply for 2010 Identify alternative accommodation for short-term spikes in demand Develop a robust database of available products Increase the number of graded establishments Graded rooms in database Non-graded rooms in database Rooms not in database Alternative Accommodation Total Source: Monitor analysis Meeting the short-term demand in terms of the volume of accommodation required during the event should be addressed through both demand-side and supply-side interventions: Demand-side action steps: – Proactively engage key stakeholders around the following areas to manage the demand for accommodation: Ticketing policy & pricing Choice of host locations Stadium capacity Match schedule Non-ticket holder participants Ease of access (transport) Supply-side action steps: – Identify possible alternative accommodation supply sources: Within host cities and in the areas surrounding host cities (e.g. universities, schools, home stays, religious properties) Evaluate other creative options (e.g. the use of cruise ships for cities with harbour access) – – Develop and manage relationships with these alternative accommodation offerings Identify and address key barriers within alternative sources of supply e.g. Timing of university holidays to coincide with the event Assessment and market access of home stays Availability of cruise ships and port capacity 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 42 – – Effective communication of the availability of accommodation capacity (e.g. through SAT and host city websites) Manage expectations to avoid overinvestment by the private sector 4.4. Transport and Tourist Safety As detailed in section 3.6 and 3.7 of this document, both transport and safety and security were considered, by the tourism industry, as the highest priority areas for infrastructure development. Therefore, addressing these two key challenges is vital for hosting a successful event, and will contribute significantly towards a long-term positive impact on South Africa’s competitiveness as a tourism destination. The responsibility for meeting both transport and safety and security requirements during the 2010 Soccer World Cup, rests primarily with other government departments: The national, provincial and local departments of transport would be focussed on ensuring (amongst others): – – – – – Adequate transportation to South Africa (in terms of both air and road) Transportation between host locations (air, road and rail) Transportation to match venues (road and rail) Flexible commuter transport schedules and safe services Redeployment of existing capacity across the country to effectively meet demand The Department of Safety and Security (DSS), the South African Police Service (SAPS) and other safety and security departments would be focused on ensuring: – – General safety and security during the event Focussed crime prevention in high-density tourism areas However, the tourism industry needs to coordinate with these departments and related agencies to ensure that certain key challenges from a tourism perspective are adequately addressed. Key tourism industry objectives for transport The tourism industry needs to ensure adequate transportation to tourism attractions and products by: Understanding the current available transport capacity, of an acceptable quality, across the various transport categories within each host city. This should take into account the enhancements that will be made through transport-related 2010 initiatives (e.g. buses, mini-bus taxis, metered taxis, trains etc). This understanding is necessary to develop a more complete and up-to-date picture of transportation that will be available for tourists during the event. Lobbying the private sector to deploy tour buses and other acceptable transportation along tourism routes during both the 2009 Confederations Cup and the 2010 event. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 43 Lobbying local and provincial transport departments to ensure flexible commuter transport schedules, safe services, and to channel excess off-peak commuter transport capacity along key tourism routes. Lobbying government to engage with the business community to manage normal commuter demand, for example, through the introduction of flexible working hours during the event. Engaging the DoT to review regulations with regard to tourism transport services, specifically licensing of tour operators and route-based permits. Engaging key stakeholders and the DoT to raise awareness of tourism transport needs (e.g. sufficient air capacity from key markets, flexible commuter transport schedules, etc.). Key tourism industry objectives for safety and security Tourist safety and security interventions need to address both the negative perceptions around safety, as well as minimising actual incidents. The primary objective for the tourism industry, in terms of safety and security, is the development of a national tourism safety and security plan. The key stakeholders (e.g. DEAT, DSS, SAPS) should be involved in the development of the plan. The plan should also incorporate the learnings from the development and implementation of the Western Cape and Mpumalanga provincial tourism safety plans. The national tourism safety and security plan should be rolled-out across all provinces in preparation for the event. It should consider the use of dedicated safety and security monitors at key tourist attractions, either as part of the tourism volunteer program or in collaboration with safety and security agencies. In addition, the South African Tourism call centre could be configured and marketed as a service able to handle emergency requests from tourists, and should have direct access to emergency response services. The broader marketing and branding messages, in the run-up to the event, should also aim to address the negative perceptions about safety and security in South Africa. 4.5. Service Levels and Skills Providing a highly satisfactory experience to tourists during the 2010 event requires the appropriate skills and service levels within the tourism industry, the appropriate service levels at key consumer touch points outside the tourism industry (e.g. embassies and immigration), and a general public that are friendly and welcoming hosts to visitors during the event. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 44 Figure 33: Skills and service initiatives should focus on key consumer touch points and the general public South African Public Volunteers Hospitality Embassies Tour Operators Interventions are required in each Interventions are required in each of the three groups: of the three groups: Other Important Players Outside Tourism Tourism Industry Satisfied Consumer Media Tourism industry Tourism industry Other important players Other important players General public General public Retail Shops Tourism Support Services Immigration Airlines Address poor service levels and skills shortages at key consumer touch points Therefore, as illustrated in Figure 33 above, the skills and service level initiative requires interventions within each of three groups: Tourism industry – – – – – Continue to address the systemic challenges around skills and training as identified in the Global Competitiveness Programme. Address the need for specific skills requirements due to the nature of the event e.g. support for multiple languages and limited institutional capacity at host location level due to limited experience in hosting events of this scale. Implement a focused training campaign on hosting and service. Other important players: Engage with key consumer touch points to address poor service levels. Implement a focused training campaign on hosting and service by leveraging the existing SA Host concept. General public – Roll out the tourism Welcome Campaign to better prepare the general public to be friendly, welcoming and helpful hosts. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 45 4.6. Events and Attractions In order to provide a diverse and exciting offering that will broaden the experience of tourists during the 2010 World Cup and maximise tourism value, events need to be carefully planned and hosted. In addition, tourism attractions need be upgraded and/or developed. The organisation of events and decisions on the development or upgrading of attractions will most likely take place at a local level; however there is significant merit in coordinating these activities centrally. Events, which are generally organised at local level, are usually the primary responsibility of host locations. Therefore although DEAT and SAT are not likely to be directly involved in organising events, their role should be focussed on facilitating planning and coordination of events across host cities to: Ensure that the events do take place in the run-up to and during 2010. Ensure that the events that are planned are aligned to SAT’s brand and the 2010 brand. Facilitate coordination across host cities to ensure consistency and to avoid duplication of events. Share consumer insights of World Cup tourists and general tourists from key 2010 source markets to facilitate more informed choice on the types of events that are planned. In terms of attractions, DEAT, SAT, and the DTI should facilitate the availability of attractions to broaden tourist experience, by supporting host locations, public sector organisations and the private sector in their respective decision-making processes around the development and upgrading of products by: Developing a more complete picture of tourism attractions already in place. Sharing consumer insights and knowledge of key tourism product gaps to facilitate product development and investment decisions. Ensuring the timely upgrading of quality attractions. Optimising the geographical spread of products. Supporting product and service innovation through the sharing of key consumer insights. Structuring incentives to encourage the development of a diverse range of product offerings. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 46 5. Making it Happen – Implementing the 2010 Tourism Organising Plan High-level action plans have been developed for each of the proposed initiatives outlined in section 4 of this document. Each action plan outlines: the objectives and scope of the initiative, key action steps and milestones, a proposed initiative team and their suggested roles and responsibilities. While this will facilitate the initiation of the implementation process at the initiative-level, the implementation of the overall 2010 Tourism Organising Plan will require effective coordination across the various initiatives within each of the six functional areas. In addition, the implementation process should focus on the most important initiatives and those with long lead times. This will ensure that the tourism industry is well placed to host a successful 2010 Soccer World Cup and preceding events like the Confederations Cup in 2009. This section outlines the proposed structure to facilitate the implementation, monitoring and evaluation of the overall plan, as well as a suggested prioritisation and sequencing of initiatives to facilitate the implementation process. 5.1. 2010 World Cup Tourism Unit In order to facilitate implementation of the 2010 Soccer World Cup Tourism Organising Plan it is proposed that a 2010 World Cup Tourism Unit be established. The unit will be responsible for the following core functions: Planning, management and monitoring Co-ordination of initiatives Stakeholder management It is important to note that while the 2010 Tourism Unit will be responsible for facilitating and coordinating the overall process, it will work closely with existing structures, line functions and initiative team leads who will be responsible for execution of the initiatives, to ensure effective and cost-efficient implementation. In order the drive the implementation process forward, the Unit should be responsible for the following planning and management functions: Developing a detailed operational plan and budget based on the initiatives outlined within this document Allocating the budget and setting up the initiative teams across the various initiatives Developing metrics and monitoring the implementation process Ensuring alignment with the broader tourism growth strategy and with the Local Organising Committee’s (LOC) and Technical Coordinating Committee’s (TCC) preparation programmes Coordinating the implementation of the 2010 Tourism Organising Plan with existing line functions within DEAT and SAT 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 47 In addition to the above planning and coordination functions, the unit should also be responsible for engaging key stakeholders to facilitate the implementation of the proposed tourism initiatives. To this end the unit may need to undertake the following stakeholder management functions to ensure an effective and efficient implementation process: Close coordination and cooperation with the 2010 LOC Facilitate interactions with appropriate national government departments and the TCC Facilitate interactions with provincial and local government Engage the tourism private sector to ensure that the necessary tourism products and services are available Build working relationships with each of the 2010 host cities organising committees It is recommended that the 2010 World Cup Tourism Unit be established within South African Tourism. SAT’s core competencies as a destination marketing organisation make it very well-suited to house the unit: Consumer research capability and understanding Marketing and branding capability, including its physical presence in many of the countries that will form a focus of 2010 marketing activities Information platform development capability Close collaboration with trade partners Ability to intervene directly in addressing key tourism competitiveness challenges Direct responsibility for some of the key intervention areas in the 2010 Tourism Organising Plan In addition, within South African Tourism, the Unit would be well-place to leverage the existing in-house line functions to implement certain key initiatives, such as marketing, branding and development of the information platform for the 2010 event. An additional consideration should be given to the speed and flexibility with which the “host” organisation for the unit is able to act and respond in a fast-changing environment. SAT’s “arms-length” positioning enables it to operate more flexibly and quickly than a traditional public sector line department. DEAT’s role in respect of the Unit would be to: Provide policy oversight and guidance. Facilitate alignment with the TCC. Facilitate intergovernmental interactions, particularly with regard to transport and safety and security via the TCC. Figure 34 below outlines the proposed structure of the Unit 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 48 Figure 34: Proposed Structure of the 2010 World Cup Tourism Unit Steering Steering Committee Committee To serve as a guiding coalition to help drive the competitiveness agenda through 2010 To be chaired by DEAT Additional capacity will be required within SAT’s current line functions SAT CEO SAT CEO Ultimate accountability and responsibility will rest with one person 2010 Tourism 2010 Tourism Unit Unit Temporary structure that would cease after the event Initially staffed with: – Head of unit – 1 to 2 senior project managers – 3 to 4 initiative managers – Administrative staff Information Information Marketing & Marketing & Branding Branding Accommoda Accommoda tion tion Transport & Transport & Safety/ Safety/ Security Security Events & Events & Attractions Attractions Skills & Skills & Service Service Level Level Execution through existing SAT line function The Unit should be a temporary structure within South African Tourism that is disbanded after the event. Within the proposed structure, the Unit will report directly to South African Tourism’s CEO, who will be ultimately responsible for implementation of the 2010 World Cup Tourism Organising Plan. The CEO will be advised by a Steering Committee to be chaired by DEAT. The purpose of the Steering Committee is to serve as a guiding coalition to ensure that, where possible, the key competitiveness objectives as outline in the Global Competitiveness Programme are addressed through the 2010 World Cup tourism initiatives. In addition, the Steering Committee should also facilitate the unblocking of barriers that may be encountered during the implementation process. It is difficult at this stage to determine the exact number of resources required within the Unit. However, it is envisaged that the unit would be initially staffed with the following resources: A Unit head 1 to 2 senior project managers 3 to 4 initiative managers 1 to 2 administrative staff The initiatives would be implemented through teams within each of the six functional areas. The information and marketing and branding initiatives could be executed through existing line functions within South African Tourism. However, additional capacity will be required within the current line functions for execution of these initiatives. The resourcing of the Unit and the specific 2010 marketing and branding spend that will be incurred during the implementation process, have not been budgeted for. This is seen as one of the important next steps in the implementation process. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 49 5.2. Suggested Prioritisation and Sequencing of Initiatives The initiatives proposed as part of the 2010 Tourism Organising Plan were prioritised, in order to inform resource allocation decisions going forward. Firstly, initiatives were categorised into two categories: initiatives that are important for managing downside risk, and initiatives that are important to capitalise on opportunities. Initiatives in the former category should be focussed on before the latter. Secondly the initiatives were ranked along two dimensions: barriers to implementation (i.e. initiatives that DEAT and South African Tourism have more direct influence and responsibility for were considered to have low barriers to implementation) and the relative importance (i.e. how critical the initiative is towards ensuring the success of the 2010 World Cup). The resultant prioritisation is illustrated in figure 35 below. Figure 35: Prioritisation of the initiatives to inform resource allocation decisions All initiatives prioritised by barriers to implementation and relative importance Low (15) Capitalise on Arrivals (3) Transaction Interface (16,18) Branding Opportunities (4) Displacement (13) Call Centre (2) Content Management Platform DEAT // SAT DEAT SAT has direct has direct influence influence and/or primary and/or primary responsibility responsibility to implement to implement (12) Research Demand (14) Volunteer Program Barriers to Implementation (17) Product Database (1) Packaging (5) Grading of Establishments (9) Skills & Service Level Requires Requires significant significant coordination coordination or DEAT // SAT or DEAT SAT to lobby other to lobby other stakeholders stakeholders to implement to implement (8) Safety Plan (10,11) Events (7) Public Transportation (6) Alternative Accommodation Initiatives to manage downside risk High Initiatives to capitalise on opportunities Low Source: Monitor analysis Relative Importance High Initiatives such as the development of a national content management platform (initiative number 2) are of high relative importance with lower barriers to implementation relative to other initiatives. Therefore, this could be an area of focus earlier in the implementation process to gain traction and to demonstrate visible progress. Initiatives that have high barriers to implementation and that are of high importance (such as public transport – initiative number 7) will require significant coordination and lobbying of stakeholders during the implementation process and consequently may have long lead times. 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 50 Taking into account the resultant prioritisation and the need for certain initiatives to be completed well before the event itself (i.e. in time for the preceding events), a proposed timeline for the 2010 Tourism Organising Plan was developed. The proposed timeline is preliminary and should be refined going forward, however it does provide an indication of the relative timing and sequencing of the proposed initiatives. Figure 36: Proposed Timeline (1 of 2) Initiative Information Develop a product database Create content management platform Identify opportunities to capture information about 2010 arrivals Create interface to enable transaction booking Research WC demand Scale-up SAT call centre Create 2010 volunteer program Accommodation Identify alternative accommodation Increase the number of graded establishments Host cities TGCSA DEAT / SAT SAT Primary Responsibility 2006 2007 2008 2009 2010 2011+ SAT DEAT / TGCSA SAT SAT DEAT / SAT 2006 2007 2008 2009 2010 2011+ Figure 37: Proposed Timeline (2 of 2) Initiative Marketing & Branding Engage with key stakeholders to package products Manage displacement Identify 2010 related opportunities to brand South Africa Transport & Safety Ensure sufficient public transportation Implementation of a national tourism safety plan Skills & Service Levels Address poor service levels and skills shortages Events & Attractions Coordinate event planning Coordinate development and upgrading of attractions Host cities Host cities DEAT / SAT 2006 2007 2008 2009 2010 2011+ DEAT / SAT DEAT / host cities 2006 2007 2008 2009 2010 2011+ SAT SAT SAT / IMC 2006 2007 2008 2009 2010 2011+ Primary Responsibility 2006 2007 2008 2009 2010 2011+ 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 51 5.3. Monitoring and Evaluation of the Plan It is important for implementation process to be monitored to ensure that the necessary preparatory efforts are made such that the tourism industry is ready to host the event. Equally it is important that the tourism industry’s performance in preparing for and hosting the event is measured in terms of the key objectives of the 2010 Tourism Organising Plan that have been outlined earlier in this document. In this regard, figure 38 below, details suggested criteria for evaluating the degree of achievement of each of the key objectives of the 2010 Tourism Organising Plan. A formal evaluation mechanism should be developed based on the criteria suggested below. Figure 38: Suggested criteria for monitoring and evaluation Key Objectives Contribute towards hosting a successful FIFA World Cup in 2010 Maximise tourism value from the event Enable other African countries to benefit from the event Maximise the opportunity to brand South Africa as a tourism destination Metrics Number of graded establishments Accessibility of tourism information Tourist satisfaction index Number of arrivals Length of stay Spend (total & average per day) Contribution to GDP Geographic spread Number of tourism packages including neighboring countries Increased tourism awareness of Africa Unaided / Aided awareness in key markets Consideration to travel to South Africa Number that plan to visit Conversion rate Number of arrivals Brand associations* Referral rate Percentage share of bed-nights spent in SMME and BEE establishments Percentage increase in arrivals, spend and LOS Geographical distribution of revenue Percentage improvement in safety & security reality and perceptions Accessibility of tourism information Improvement in public transportation Frequency Yearly (pre-event) Responsibility SAT / DEAT Once-off (post event) SAT / DEAT Once-off (post event) DEAT / SAT / RETOSA Yearly (pre- and post event) SAT Have a positive impact on social legacy through advancing the tourism competitiveness agenda Yearly (pre- and post event) SAT / DEAT / DOT/ DSS * Includes performance and personality associations Source: SAT Brand Tracking Reports, Global Competitiveness Project; Monitor analysis 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 52 6. Conclusion The 2010 Soccer World Cup Tourism Organising Plan aims to provide a framework to guide efforts within the tourism industry to prepare for the event. Meeting the objectives outlined within the plan requires the cooperation of all role players within the industry. The 2010 Tourism Plan provides a concrete step forward in ensuring that the tourism industry plays its role in hosting a successful event, that will not only lead to many of the core tourism challenges being addressed, but which will also significantly contribute towards South Africa taking its place as one of the world’s premier tourism destinations. It’s impossible! 2010 Soccer World Cup Tourism Organising Plan: Executive Summary - November 2005 Confidential 53